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(solution) During Valentine's week, more people buy chocolates and
During Valentine?s week, more people buy chocolates and chocolatiers offer their chocolates in special red boxes, which cost more to produce than the everyday box. Perform an analysis for the market of boxes of chocolates (explain in words + graph) and show on a graph the adjustment process to the new equilibrium. Describe the changes in the equilibrium price and the equilibrium quantity.
Following graph shows the required changes.. Initially, market for chocolates is in equilibrium at point E, with equilibrium price being P per
box and equilibrium quantity being Q boxes.
Due to...
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DATE ANSWEREDSep 13, 2020
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